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Summit, JERA sign $2b primary deal

Staff Correspondent
27 Apr 2023 13:40:59 | Update: 27 Apr 2023 14:54:35
Summit, JERA sign $2b primary deal
In the presence of Prime Minister Sheikh Hasina along with her entourage and Japanese senior government officials, Summit and JERA inked an MOU valued at USD 2 billion to explore investment in Bangladesh’s energy supply chain in Tokyo, Japan — Courtesy Photo

Summit Corporation Limited (Summit), a subsidiary company of Summit Power International Limited, and JERA Asia Pte Ltd (JERA Asia) a subsidiary company of JERA Co Inc (“JERA”) signed a Memorandum of Understanding (MoU) on Thursday.

The MoU was signed in the presence of Prime Minister Sheikh Hasina and her entourage - Salman F Rahman, private industry and investment adviser to the HPM, Abul Kalam Abdul Momen, minister for Foreign Affairs, Zunaid Ahmed Palak, state minister of ICT Division, Prof Shibli Rubayat Ul Islam, chairman, BSEC, Lokman Hossain Miah, executive chairman of BIDA, senior Japanese officials  - HE Iwama Kiminori, Japanese ambassador to Bangladesh, Norihiko Ishiguro, chairman of JETRO, Muhammed Aziz Khan, founder chairman of Summit Group and Faisal Khan, additional managing director of Summit Corporation.

Toshiro Kudama, CEO of JERA Asia, and Ayesha Aziz Khan, director of Summit Corporation and MD & CEO of Summit Power International signed the MoU. Valued around USD 2 billion, the objective of the MoU is to collaborate in providing cost-effective and reliable long-term Liquefied Natural Gas (“LNG”) and other fuels supply in addition to developing both on-shore and off-shore regasification and storage infrastructure for Bangladesh.

 “JERA is keen to assist Bangladesh's objective to secure a reliable energy supply and is pleased to be able to do that by building up the existing relationship with Summit. The signing of the MOU is a significant first step towards achieving the objective. JERA looks forward to further contributing to Bangladesh's reliable energy supply in collaboration with Summit,” said Kudama.

Muhammed Aziz Khan, Founder Chairman of Summit Group said, “A country's energy consumption has become the main index to its affluence and development. Like the rest of the world, Bangladesh is also facing energy security concerns as a result of high-interest rates, supply-chain shock, and market volatility. At Summit, we are offering solutions through the development of much-needed LNG storage and supply infrastructure with our partner, JERA.”

As Bangladesh approaches the transition to a ‘developing country’ status in 2026, it faces global energy supply challenges. Summit and JERA’s collaboration offers Bangladesh an alternative affordable energy supply solution by bringing down the cost of importing essential fuels into Bangladesh. It also dovetails with the International Monetary Fund’s (IMF) intent to reduce Bangladesh’s balance of payment pressure due to import-intensive climate investments as the recipient of the Resilience and Sustainability Facility (RSF).